Retailers are gearing up for 2025 with a focus on driving growth and covering costs, according to a new report from Circana.
Circana’s Rewired: Finding Growth in the Future of Retail Outlook Report highlights key trends shaping consumer behaviour and outlines strategic imperatives for brands to succeed in a shifting economy.
As the economy improves, retailers must adapt to changing consumer expectations. Shoppers are increasingly seeking products that offer escapism, with a particular focus on nostalgic items.
Alistair Leathwood, Head of Media Analytics and Insights at Circana, said optimising the experience economy is key as shoppers want ultimate value from their purchasing decisions.
“Brands will need to capitalise on the power of subconscious commerce to engrain themselves into daily life.”
In addition to nostalgia, inspiration and aspiration are essential for brands to elevate consumers’ moods and help them achieve their goals. With many shoppers looking for affordability and out-of-home experiences within the home, these elements are critical for brands to remain competitive. While self-care, once a reactive activity, has shifted to a proactive one.
Sustainability is another priority. Leathwood emphasised that investing in environmental, social, and governance (ESG) initiatives, along with circular retail practices, will build customer loyalty. Brands must also be flexible in their approach, adapting to demand with an elastic brand model.
“There is a lot for brands to consider, but doing this early in the year will set them up for success and potential growth as the economic pressure is set to ease slightly,” said Leathwood.
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